The presentation begins with an analysis of the demand and supply of currencies used by transactors. What motivates individuals and businesses to use a currency other than their own? If businesses in Singapore and Indonesia cannot agree on using SGD or IDR, which currency will they choose?

While countries can deter others from using their currencies (Switzerland and Singapore, for example), the use of a country’s currency by third-country transactors cannot be compelled. They must earn this role in competition with others.

The special role of the RMB will be analyzed from this perspective, in part by comparing the RMB with another Asian currency supported by a very large economy, the JPY. The analysis will also ask why the PRC government has been so keen to promote the international role of their currency.

We invite Dr Gunter Dufey, Prof Emeritus at the University of Michigan to discuss.

Professor Gunter Dufey
Dr. Gunter Dufey joined the faculty of the University of Michigan Business School in 1968. His academic interests center on international money and capital markets as well as on financial policy of multinational corporations, specializing on issues of Corporate Governance, Risk Management and the Intl. Expansion Strategy of business firms. He also serves on the faculty of NTU/NBS.